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HomeMy WebLinkAboutExhibit6CITY OF MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY MINUTES OF TEFRA HEARING REGARDING THE PROPOSED ISSUANCE OF NOT EXCEEDING $120,000,000 CITY OF MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH EAST ISSUE, SERIES 2007 IN ONE OR MORE SERIES August 23, 2007 CHAIR: THE MEETING WILL COME TO ORDER. This hearing is being conducted by and on behalf of the City of Miami, Florida Health Facilities Authority. Attending the hearing on behalf of the Authority are the following persons: Priscilla Greenfield, Authority Member John Matuska, Authority Member Mirtha Guerra -Aguirre, Member Seepersaud "Pete" Chircut, Secretary of the Authority and Treasurer, City of Miami Lori Smith-Lalla, Squire, Sanders & Dempsey L.L.P., Counsel for the Authority Robin Jones -Jackson, Assistant City Attorney, City of Miami I will now ask Counsel to describe this financing. COUNSEL: We are now conducting the public hearing on the proposed issuance by the Authority on behalf of Catholic Health East of an amount not to exceed $120,000,000 Health System Revenue Bonds, Catholic Health East Issue, Series 2007 (the "Bonds"). The proceeds of the Bonds will be used for one or more of the following purposes (a) to refund (i) the Authority's outstanding Health System Revenue Bonds, Catholic Health East Issue, Series 2003B and Series 2003C, the proceeds of which bonds financed the cost of health care facilities for Mercy Hospital in Miami and Holy Cross Hospital in Fort Lauderdale, both of which hospitals are owned and operated by affiliates of Catholic Health East, and (ii) the City of Tampa, Florida, Health System Revenue Bonds, Catholic Health East Issue, Series 1998, the proceeds of which bonds financed the cost of other health care facilities for Holy Cross Hospital, (collectively, the "Refunded Bonds"), (b) finance the cost of certain capital improvements more particularly described below (the "Project") and (c) to pay issuance costs with respect to the Bonds. The proceeds of the Bonds will be loaned by the Authority to Catholic Health East, a Pennsylvania non-profit corporation, and a portion will be used to prepay obligations under the Refunded Bonds governing documents, thereby effecting a refunding of the Refunded Bonds. Additionally, a portion of the proceeds of the Bonds may be used to finance the Project. TAMPA/69159.1 The proceeds of the Series 2003B Bonds and the Series 1998 Bonds that will be refunded by the Bonds were used to finance projects for Holy Cross Hospital, Inc. in Fort Lauderdale, Florida, and included acquisition of health care facilities and equipment, and improvements, construction and renovations with respect to Holy Cross' hospital facilities, as well as renovations to the ambulatory care areas, parking garage expansion, and other miscellaneous capital expenditures. The Holy Cross projects are owned and operated by Holy Cross Hospital, Inc. and are located on or contiguous to the Holy Cross Hospital facilities at 4725 North Federal Highway, Fort Lauderdale, Florida 33308. The proceeds of the Series 2003C Bonds that will be refunded by the Bonds were used to finance the expansion of the Mercy Hospital Emergency Department and other miscellaneous capital expenditures. The new Project will consist of (i) the construction of parking facilities at Mercy Hospital, including a multi -story parking garage containing approximately 825 parking spaces, and (ii) renovations and improvements to existing Mercy Hospital facilities and the acquisition and installation of equipment used in or useful in connection with the operation of Mercy Hospital. The Mercy Hospital projects are or will owned and operated by Mercy Hospital, Inc. and are or will be located on or contiguous to the Mercy Hospital facilities at 3663 South Miami Avenue, Miami, Florida 33133. The Authority will not issue bonds to refund the Holy Cross financings unless and until the City of Ft. Lauderdale approves such issuance pursuant to an Interlocal Agreement with the Authority. The Bonds shall not be a debt, liability or obligation of the Authority, the City of Miami or the State of Florida or any political subdivision thereof, but shall be payable solely from payments made by Catholic Health East. This public hearing is being conducted pursuant to the requirements of the Federal Tax Equity and Fiscal Responsibility Act of 1982, as amended by the Tax Reform Act of 1986, together referred to for purposes of this hearing as TEFRA and embodied in Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"). TEFRA requires that in order for the interest on 501(c)(3) hospital revenue bonds to be exempt from federal income tax, the bonds and the projects which they will finance must be approved by either a voter referendum or by an applicable elected body or person, after a public hearing following reasonable public notice. A transcript of this hearing will be provided to the City Commission of the City of Miami at a regular meeting of the Commission, at which time the Commission will, for purposes of Section 147(f) of the Code, approve or disapprove the financing to be undertaken by the Authority for the benefit of Catholic Health East, with respect to the Mercy Hospital facilities. It should be noted that the proceedings of this public hearing are being recorded 'and will be maintained as a permanent record. The Notice of Public Hearing was published in The Miami Herald and the Fort Lauderdale Sun - Sentinel advising that the Authority would hold this public hearing on August 23, 2007, at 5:00 p.m., TAMPA/69159.1 at the City of Miami Administration Building, on the proposed financing to be undertaken by the Authority for the benefit and on behalf of Catholic Health East. The affidavits showing Proof of Publication in the Miami Herald will be part of the records of these financings. Anyone wishing to speak or submit written testimony should give his or her name and address for the record. Any final approval of the Authority is conditioned upon the Authority's approval of the plans of financing and approval of the financing documents. Testimony will now be heard by anyone desiring to speak on the proposed Project. The record reflects that Jerry Mashburn, Senior Vice President and Chief Financial Officer of Mercy Hospital is in attendance to answer any questions. The record should also reflect that John Matuska, a member of the Authority, is also the CEO of Mercy Hospital, and for that reason, he has recused himself from any participation in voting to approve or disapprove of this financing, or involving himself in any Authority discussions pertaining to this financing. Is there anyone who wishes to speak or file written testimony on this matter? [Let the record reflect that no one appeared to offer oral or written testimony.] This concludes the public hearing. �r- Secretary City of Miami, Florida Health Facilities Authority TAMPA/69159. I